This study examined employee health plan sponsorship among
California businesses that employed between 2 and 50 individuals to
determine why some employers offer health insurance plans and some do
not. Businesses were divided into two groups: employers that offered
health insurance and those that did not offer health
insurance. Separate questionnaires were used for the two groups, but
many questions in the two surveys were identical so that the two
groups of businesses could be compared. Respond... (more info)

This study examined employee health plan sponsorship among
California businesses that employed between 2 and 50 individuals to
determine why some employers offer health insurance plans and some do
not. Businesses were divided into two groups: employers that offered
health insurance and those that did not offer health
insurance. Separate questionnaires were used for the two groups, but
many questions in the two surveys were identical so that the two
groups of businesses could be compared. Respondents were asked whether
health care coverage was available to full-time and/or part-time
employees and retirees, and whether domestic partners (same-sex and/or
opposite-sex) were eligible as dependents. Employers who offered
health care coverage to their employees listed the types of medical
plans that they offered, in both 1999 and 2000, and the number of
employees enrolled in the plans. The plan types were traditional
indemnity, Preferred Provider Organization (PPO), Point-of-Service
(POS), and Health Maintenance Organization (HMO). Employers also
described employee and employer contributions toward health care
premiums, the kinds of freestanding plans (e.g., vision, dental,
substance abuse / mental health) they offered, and whether they
expected health benefit costs to increase or decrease. Respondents
also rated the likelihood of their organization reducing benefits and
raising employee contributions. Employers that did not offer their
employees health care coverage were asked if they had ever offered
coverage, whether they had seriously considered starting to offer
health insurance to their employees, whether they had gotten a quote
for health insurance, and how likely it was that they would offer
health insurance in the next two years. Employers that did not
currently offer health insurance were also asked to estimate the cost
to their company of health insurance, how much they would be willing
to pay for employee health insurance, and whether they would need to
reduce wages or benefits to pay for the insurance. All employers were
asked whether they had applied for insurance and been turned down, the
number of years they had been in business, and whether the Internet
had been used as a source of information about health
insurance. Respondents described other benefits they offered their
employees and answered a number of factual questions about health
insurance, such as whether employer contributions to health insurance
premiums for employees were tax-deductible. Respondents also gave
their opinions on a number of other items, such as whether an HMO
could meet the needs of their organization. Employers were asked
whether they were familiar with various means of purchasing and
providing health insurance, such as Section 125 plans or purchasing
alliances, and, if they provided health insurance, which method they
had used. General characteristics of each business were recorded,
including number of employees, type of business, the proportion of
full-time, part-time, and seasonal/temporary employees, how many
employees had been hired and how many had left in the previous 12
months, number of employees at different salary levels, whether the
owner of the organization was a woman, and the proportion of employees
that were female or members of ethnic minority groups.

To protect respondent privacy, ZIP codes and detailed industry classifications of responding establishments are restricted from general dissemination. Users interested in obtaining these data must complete an Agreement for the Use of Confidential Data, specify the reasons for the request, and obtain IRB approval or notice of exemption for their research. Apply for access to these data through the ICPSR Restricted Data Contract Portal, which can be accessed via the study home page.

Methodology

Sample:
A random sample was drawn from a database of private
employers, stratified by employer size (3-9 employees, 10-24
employees, and 25-49 employees), single-site versus multiple-site
employers, and location (Los Angeles versus the rest of
California). In the case of multi-site establishments, only the parent
company was sampled. Employers with either 2 or 50 employees -- one
less and one more than the targeted size -- were also eligible.